INVESTMENTS IN UNCONSOLIDATED AFFILIATES

9 Months Ended

Nov. 03, 2019

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN UNCONSOLIDATED AFFILIATES

INVESTMENTS IN UNCONSOLIDATED AFFILIATES

The Company had investments in unconsolidated affiliates of $148.4 million, $207.1 million and $198.0 million as of November 3, 2019, February 3, 2019 and November 4, 2018, respectively. These investments are accounted for under the equity method of accounting and included in other assets in the Company’s Consolidated Balance Sheets. The Company received dividends of $13.6 million and $3.6 million from these investments during the thirty-nine weeks ended November 3, 2019 and November 4, 2018, respectively, and made payments related to these investments of $2.5 million during the thirty-nine weeks ended November 3, 2019 to contribute its share of funding for the period.

PVH Legwear

The Company and a wholly owned subsidiary of the Company’s Heritage Brands socks and hosiery licensee formed a joint venture, PVH Legwear LLC (“PVH Legwear”) in the thirty-nine weeks ended November 3, 2019, in which the Company owns a 49% economic interest. PVH Legwear was formed for the purpose of consolidating the Company’s socks and hosiery businesses for all Company brands in the United States and Canada. PVH Legwear licenses from the Company the rights to distribute and sell in these countries TOMMY HILFIGER, CALVIN KLEIN, IZOD, Van Heusen and Warner’s socks and hosiery. Additionally, PVH Legwear sells socks and hosiery under other owned and licensed tradenames. PVH Legwear began operations in December 2019. This investment is being accounted for under the equity method of accounting.

Gazal and PVH Australia

Prior to May 31, 2019, the Company held an approximately 22% ownership interest in Gazal and a 50% ownership interest in PVH Australia. These investments were accounted for under the equity method of accounting until the closing of the Australia acquisition on May 31, 2019, on which date the Company derecognized its equity investments in Gazal and PVH Australia and began to consolidate the operations of Gazal and PVH Australia into its financial statements. Please see Note 4, “Acquisitions,” for further discussion.